New Study Shows Aussies Wasting Money on Health Insurance
Millions of Australians could be paying for health insurance benefits they aren’t using
Health insurance extras can sweeten the deal for many policyholders, but a new study shows that millions of Australians are not using their extras. That’s a possible 8.3 million Australians who are paying for benefits but don’t take advantage of their entitlements.
In fact, almost 75% of over-50s don’t even know what is included in their extras package. This age group is more likely to have top-tier extras cover, and could potentially benefit the most, though thousands of younger Aussies are falling into the trap too. But if you don’t know what extras you have, how can you use them?
What are extras?
There are typically three levels of extra cover: basic, medium, and top. The higher your level, the more you will pay, but the more services you will have access to. Extras vary depending on your insurer, policy type, and level of coverage, but may include:
- Chiropractic care
- Dental care
- Hearing aids
- Natural therapies
- Speech therapy
Your health fund is required to provide you with a written statement of extras coverage included with your policy. This can help you understand your entitlements and use them.
Save money on extras
The best way to get value for your extras is to make sure you’re using them! Surveys indicated that up to 68% of Australian policyholders are unsure how much they can claim on extras. Reports show that an average of $370 were paid out in extras benefits during 2013-2014, a number that would likely be higher if more people were claiming their extras.
If you’re not using your extras and don’t intend to, consider dropping the ones you don’t need. It is estimated that policyholders can save up to 45% in fees by eliminating unused extras. Before doing so, it’s a good idea to take a closer look at your overall policy. It should be tailored to suit your individual needs, not the general population.
Compare health insurance policies to see if you could be saving more money with a different fund. Basic policies don’t always offer the best value; sometimes a policy that offers more money back on the extras you actually use will pay off over time.
Health insurance should enhance your life, not take away from it. Don’t waste money on an inflated health fund – maximise value by customising a policy that is just right for you. If you know what your policy offers, you are more likely to use it.
Here’s How You Do It:
Step 1: Select your life stage below.
Step 2: Once you select your preferred coverage options, you will have the opportunity to compare quotes from multiple health funds.
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